Dáil Éireann díospóireacht -
Wednesday, 9 Jul 1997

Vol. 480 No. 2

Written Answers. - CIÉ Transport Tontine Society.

Noel Ahern

Ceist:

67 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise and Employment if the liquidation or insolvency of the CIÉ Transport Tontine Society is under the aegis of her Department; if so, if the process has been completed; the refunds, if any, which are being made to investors; the compensation fund or process, if any, available to them; and if she will make a statement on the matter. [13409/97]

Tánaiste and Minister for Enterprise and Employment (Miss Harney)

The society in question is a friendly society registered under the Friendly Societies Act, 1896. The Registrar of Friendly Societies has certain statutory functions in relation to such societies.

In 1984 the then registrar appointed two inspectors under section 76 of the Friendly Societies Act, 1896. Their reports were finalised in February 1990 and the case was referred to the Director of Public Prosecutions. In December 1992 the former acting treasurer of the society appeared in Dublin District Court on 49 charges of larceny, forgery and falsification of the society's accounts in the period 1978 to 1983. He was sent for trial to the Dublin Circuit Criminal Court in October 1993. However an application was made to the High Court by the defendant seeking a prohibition order to prevent the trial taking place and this was granted in January 1994. The application was based on the contention that there had been an excessive delay in bringing the charges to a hearing and that as a result the defendant was prejudiced in the preparation of his defence and was, therefore, being denied a fair trial. An appeal by the Director of Public Prosecutions to the Supreme Court was dismissed.

The collapse of the society is understood to have left a deficit in excess of £1 million, of which about £800,000 was owed to savers/depositors. A liquidator was appointed to the society by the High Court in June 1985. However, I understand that there is no possibility of recovering any of the moneys lost and that the liquidator is anxious to bring the liquidation to a conclusion at the earliest possible date.

There is no compensation fund available to deal with the compensation of depositaries in failed friendly societies.